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Agriculture: Analysis: Businesses in agriculture and food industry may reach 20 billion euros in next two years
Romanian agriculture is still blocked in the 20th century when it comes to automation and marketing of farm produce, but businesses in agriculture and food industry may reach 20 billion euros in the next two years, according to a analysis by Frames & Factory 4.0.
According to the analysis, the over 160,000 companies in this sector could exceed a business figure of 100 billion lei in the next two years, since the sector has grown significantly despite the competition of imported products and the lack of know-how of tens of ministers the Agriculture Ministry has had. In other words, agriculture, as well as many other economic branches, has adapted and left behind political-administrative decisions and performances can be seen, analysts say.
Data from the Finance Ministry, INS and Trade Registrar show that in 2019, before the Covid crisis, the 162,000 companies activating in these sectors reported a historic business figure of 84.1 billion lei and an unprecedented profit of 7 billion lei.
The pandemic and serious drought of 2020 made the business drop by 8 billion lei, to 76.2 billion lei, while net profit dropped to 6.1 billion lei.
The effects of the 2020 drought and the diseases that reduced swine and poultry effectives determined investors in this sector to look for solutions.
According to experts, technology appeared in all production chains, from plant growing to animal husbandry and processing farm and animal produce.
Statistics presented by Frames & Factory 4.0 analysis were made based on official financial data declared by the 162,098 companies in sectors of farm production, fish farms, animal husbandry and processing vegetal and animal products.
Statistics refer to 2010-2020, as found in financial data presented by companies in balance reports presented to the Ministry of Public Finance.